In spite of the low supply of robusta coffee in Brazil, prices decreased in November, reports CEPEA’s quarterly report.
Pressure came from international quotes drops, which were influenced by better expectations for the 2016/17 crop in Vietnam, the world’s number one robusta producer.
In general, trades were slow in the Brazilian market, since many purchasers were out of the market.
Between October 31 and November 30, the CEPEA/ESALQ Index of robusta type 6, screen 13, dropped a staggering 11,43%, closing at 477.34 BRL (140.97 USD) per 60-kilo bag on November 30.
Growers traded small batches and purchasers only bought to replenish inventories.
In early November, the return of rains in EspÃrito Santo and Rondônia heartened growers and many resumed fieldwork for land preparation.
Although agents did not expect larger volumes in the 2017/18 season, rains also helped to recover crops for the 2018/19 season.
Arabica
Rains followed by sun favored the Brazilian arabica production in the 2017/18 season. Although a smaller volume will be produced, due to the negative biennial cycle, the weather may increase quality.
Arabica prices remained stable in November. The CEPEA/ESALQ Index, type 6, hard cup or better (delivered in São Paulo city), closed at 535.43 BRL (157.13 USD) per 60-kilo bag on November 30.
